WIXLIB

We believe that the economy can do betterWe envision an economy that serves society and the peopleWith everything we do we help purpose driven companies

The ProblemThe ProposalThe ConsequencesThe economy today is losing its ability toMany founders, entrepreneurs andserve society and the people. Current trendsbusinesses strive to build or preserve aBy 1. supporting and enabling purpose drivenand challenges such as challenges topurpose driven company.internet neutrality and the rise of networkbased technology monopolies such asWe are rethinking and redesigningGoogle and Facebook are accelerating thisfundamental aspects of companies and thetrend. Alternatives are and will be needed:economy. We offer concrete alternatives for,ownership, management and investment to1. Centralisation of capital and powerenable companies to become and stay2. Increasing social injusticepurpose driven.3. Irresponsible business practices4. Demotivated and burned out employees5. Short-term, speculative investmentstrategies6. Ineffectiveness to adapt to digitalisedand globalised 21. centurycompanies and 2. scaling a movement thatbrings more successful purpose drivencompanies to life, we expect to see thefollowing effects and opportunities:1. Alternatives where helplessness & disorientation dominates2. Growing responsible and human behaviour in organisations3. Increased success of purpose driven companies4. Create a „social test habitat" to answer the question of how thefuture of the economy and it’s role in society will look like5. Explore new forms of cooperation between companies6. Explore how the economy can increase its ability to solve thechallenges of the 21. century7. Political changes to concepts of ownership and investment8. Efficiently employed, sustainable capital9. Sustainable, successful VCs10.Increased purpose driven entrepreneurship

ImpactA venture exploring one of the most important impact drivers for societyRelevanceMissionPurpose offers the opportunity to be part of aWe want to change and influence thejourney exploring one of the foundations ofeconomy bottom up by 1. validatingsociety - the economy and the way we work.successful alternatives 2. supportingPurpose Economyserving society and the peoplepurpose driven companies and 3. creatingWork always has been a highly relevantexamples how the company and economy ofinfluencer for society. In times of the thirdthe future could look like.industrial revolution and the bigtransformation, change is on our doorstep inEvery Purpose-Company is one step on ourany case.way to the Purpose-Economy. Thats why wehelp start-ups and small and medium sizedBut which direction will this transformationcompanies to become or stay Purpose-take?Companies.VisionCore AssumptionsWe work for a responsible, social and free1. We believe in a positive concept of man.economy serving society and the people - aPurpose-Economy.2. We believe that responsible behaviourhappens when decision making,execution and consequences happenclose to each other.More and more start-ups andSME become Purpose-Companies

Core AspectsWith alternative solutions for management, ownership and financing we bring purpose to life in every core aspect of company buildingPurpose TriangleTo build a responsible, purpose drivenPurpose Management to create organisation andcompany you need the right parameters.management structures that serve the purposeLots of companies already managed to makethis possible.We make it easier to become or stay aManagementpurpose driven company. We offeralternatives and help to create a successfulprocess. We want to create more successstories and scale change.OwnershipInvestmentPurpose Ownership to make sure thePurpose Investment and Purpose Fund toPurpose-Principles are not changeableenable companies to grow in a sustainable andpurpose driven way

Purpose NetworkA network to supply resources to purpose-driven CompaniesPurpose NetworkConsultThe Purpose network advises founders andSupporting companies in buildingowners of SMEs on all aspects of building aeffective organisational structurespurpose-driven company including the legalstructure, investors and management. Itprovides the following resources:Management1. Purpose-Foundation to implementPurpose-Ownership2. Purpose-Fund provides Purpose-OwnershipInvestmentInvestment3. Purpose Consult co-creates managementand organisational structures4. The purpose network facilitates sharing ofresources and information between purposecompanies5. The purpose network builds a pool ofFoundationFundpotential successors for founders ofSupporting the purpose network,Connecting self-owned companiespurpose-driven companiesfacilitating self-ownershipwith investors to fund growth6. The purpose network promotes the idea ofself-owned, purpose-driven companies atconferences and events

Rethinking Company OwnershipThe ProblemPurpose ApproachThe ConsequencesCurrent legal forms for companies only allowWe propose a new form of ownership calledPurpose ownership is a clear signal tofor a very limited understanding of“Purpose-Ownership”, which we understandemployees, investors, clients and other po-ownership.as a form of self-ownership.tential collaborators that their contributionbenefits the purpose of the company ratherWe believe in the benefit of the personalPurpose ownership decouples voting rightsresponsibility that comes with privatefrom dividend rights. Those who are leadingownership, but we challenge the orthodoxya company and are actively involved hold theThis leads to: 1. highly motivated entre-that a company serves its owners and notvoting rights. Those voting rights must bepreneurs, 2. intrinsically motivated emplo-the other way around. We understandpassed on to successors as soon asyees, 3. better access to cheaper financing,company ownership as a trusteeship andsomebody leaves the company.4. more trusting and committed customers,responsibility to the company and itsstakeholders.than the private wealth of equity holders.5. increased social responsibility 6. lessWe call this self-determination of thecompany. The dividend rights are held byinvestors without voting rights. Thisapproach is inspired by companies likeBosch and Zeiss, which share similarownership principles.unequal private capital accumulation.

Purpose FoundationPurpose Ownership to make sure the Purpose-Principles are not changeablePurpose PrinciplesLegally Binding CommitmentThe Purpose Principles are the foundation ofThe Purpose Foundation ensures thea Purpose-Company. They are written in thePurpose-Principles can not be changed. Thestatues of every Purpose Company to ensureFoundation holds a small percentage of thethey are and stay purpose driven.companies’ voting rights to secure a vetoOwnership EntrepreneurshipPurpose-Companies99% belong to the companyVoting rights always belong to those, wholead the company and are responsible for it.If a founder leaves the company, she musttransfer her control rights (ownership) to a1%1%1%1%1%1%right against altering the purpose principlesin the constitution. Alternative legalframeworks are also possible.Ownership hack: the Foundation holds 1% ofthe voting rights and veto right on Purpose-successor, who is committed to the purposePrinciples. The Foundation itself is obliged toand the idea of the company.always veto if the purpose principles shall beProfit Means, not an end in itselfVoting rights (company ownership) are notconnected to dividend rights. Investorsreceive fair dividend rights (or fair interestrates) but no voting rights. Purposecompanies understand profits as seeds forthe future not as end in itself.Purpose Foundationholds 1% of the voting rights and veto rightson Purpose Principleschanged.

Rethinking InvestmentThe ProblemPurpose ApproachThe ConsequencesControl vs. entrepreneurshipIf funding or growth capital is needed theCollaboration and sharing of services,Purpose-Fund to enable longterminformation and other resources is possibleEntrepreneurs often become managers ofsustainable growth of purpose drivenwhen everybody knows that all companies inspeculation objects, controlled by investors.companies.the network are purpose driven. We want toThis is not particularly motivating for anyoneexplore the degree to which organisationalin the company, because the interests of theThe purpose fund and our network ofborders can fade away and an "ecosystem ofinvestor are generally prioritised over theaffiliated investors are willing to invest inentrepreneurs" can emerge.purpose of the company.purpose driven self-owned companies thatrespect the Purpose-Principles.Long instead of short term life cyclesHighly motivated entrepreneurs, which areindependent, but supported by peers andadvisors.Traditional investors often want to earn backtheir investment, sell the company or bring inAn evergreen fund that supports aanother round of investors within a relativelydecentralised bottom-up economyshort timespan. This might be good for theinterests of investors, but it is not alwaysPurpose driven allocation of resources andgood for the purpose of the company.increased sustainability.

Purpose FundPurpose Fund to enable companies to grow in a sustainable and purpose driven wayPurpose FundOverviewThe Purpose Fund invests in start-upsAn alternative way to finance start-upindefinitely, with no plans for an exit.businesses.Investors cannot force the fund to buy backtheir shares and exit investments. They canhowever freely sell shares and thus liquidisethem without harming the Purpose Fund.Dividends can exceed the risk-free interestrate by up to 5%.1. The Fund is evergreen and does not doconventional exits.2. Investors can receive a capped dividend,InvestorsFundbuy tradable shareswithout voting rightsEquity financingcan sell their share of the fund but do notwithout votingpossess voting rights.rights3. Investment decisions are made by aninvestment board consisting ofexperienced advisors, Purpose Fundmanagement team and representatives ofthe Purpose-Companies.4. The fund invests exclusively in self ownedbusinesses.Dividend

Rethinking ManagementThe ProblemPurpose ApproachThe ConsequencesSimply put the design of an organisation ofManagement structures build on a positiveExplore how new forms of management canpurpose driven people shouldn’t useconcept of man, trust and self-organisation.be influenced if you dare to challenge themanagement blueprints that were designedinvestment and ownership part as well.to control and motivate people in a profitPurpose driven companies allow to fullyorientated environment based on a highlyactivate one of the strongest abilities ofBuild smarter, faster and more humannegative concept of man.mankind to solve problems: cooperation.companies that are alive, successful andresponsible at the same time.If you want to create an economy that servesPurpose-Management strengthenssociety and the people you need to apply aresponsible behaviour throughout theFind answers to equip companies with thedifferent structure.company, makes real cooperation possible,ability to successfully react to the challengesbrings out the full potential of employees.of 21. centurycomplexity. The ability of traditionalEvery aspect is designed to enablePeople who work in such an environment willmanagement structures to deal with theresponsible behaviour. The basis for this toact more conscious and drive responsibilitychallenges of 21. century are limited.put together decision making, actions andand change in their environment.Hierarchies, heteronomy and functionalconsequences.Further more companies face ever growingorganisations are not the adequate answerto a world that is determined by speed,flexibility and uncertainty.